12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents
 
 
FINANCIAL & MARITAL

Cohabitation Agreement coming soon!
Separation Agreement coming soon!
No-Fault Divorce coming soon!
Bankruptcy coming soon!
 
 

Advantages and Disadvantages of a Limited Liability Company (LLC) in Ponca City, OK

Advantages and Disadvantages of a Limited Liability Company (LLC) in Ponca City, OK


Grit is often the single-most predictor of success.
 
- Jonah Lehrer


A Limited Liability Company (LLC) is a legal business entity that combines the liability protection of a corporation, the operating flexibility of a Partnership, and the tax benefits of a sole proprietorship. Though the rules for forming an LLC vary by state, it is a popular option for many start-up businesses.

Advantages:

Limited Personal Liability and Exposure

One advantage of an LLC is the limited liability shield, which protects the personal assets of its members. Creditors, typically, cannot hold members personally responsible for the debts and liabilities of the business. Members can only be liable to the extent of their business investment.

Pass-through Taxation

Though there are an array of tax options for a Limited Liability Company; an LLC is generally treated as a "pass-through" entity. Profits and losses pass through the business to the members and are taxed at the personal level. The business itself is not taxed. Reporting is done on members' individual income tax returns. No double taxation with both the company and the owner(s) paying taxes on the earnings of the business.

Operational Flexibility & Simplicity

An LLC is much less formal than a corporation. Record keeping and administrative procedures are not as onerous. There are no quarterly and annual meetings, or tax filings. Neither is there a board of directors.

Legitimacy

Registering a company as an LLC adds credibility to a business, and can help in brand building and marketing to potential clients and suppliers. In addition, the company can enter into contracts on its own, and also acquire property.

Disadvantages:

Higher Fees

An LLC typically pays higher filing fees compared to some other business entities or sole proprietorships. Additionally, some states require annual renewal fees or franchise taxes. It is difficult for an LLC to attract additional investment because the company does not have the ability to issue stocks and bonds. Members have to finance its business activities, or take in private investors. Getting a loan can be tough, especially for small and start-up companies. The company may have to use its business, or personal, assets to guarantee business loans.

Fewer fringe benefits

Employees of an LLC who receive fringe benefits, for example, medical insurance and parking, must treat these benefits as taxable income. This is also true for employees who own more than 2% of an S-corporation. However, employees of a C-corporation do not have to report fringe benefits as taxable income.
 
Personalize & Print a Free OK Last Will Create This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
 
Personalize & Print a Free OK Living Will Create This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Related Legal Services near Ponca City, OK
Biby Jacob
116 N 5th St
Ponca City, OK 74601
(580) 765-9967
Attorneys
Miller Barbara A
400 E Central Ave # 405
Ponca City, OK 74601
(580) 765-9888
Bankruptcy Law Attorneys, Attorneys, General Practice Attorneys
Devinney Law Firm, P.C.
222 E Grand Ave Ste 505
Ponca City, OK 74601
(866) 800-9660
Attorneys, General Practice Attorneys, Legal Service Plans
Devinney Law Firm, P.C.
115 E Grand Ave
Ponca City, OK 74601
(580) 749-9454
Attorneys,  Personal Injury Law Attorneys,  Criminal Law Attorneys,  Employee Benefits & Worker Comp
Devinney Law Firm PC
115 E Grand Ave
Ponca City, OK 74601
(580) 749-9414
Attorneys,  Personal Injury Law Attorneys,  Employee Benefits & Worker Compensation Attorneys,  Soci
Trotter Trey
400 Fairview Ave
Ponca City, OK 74601
(580) 765-8739
Family Law Attorneys, Attorneys, Divorce Assistance
Shears Jack L
1932 Lake Rd
Ponca City, OK 74604
(580) 762-8384
General Practice Attorneys, Attorneys, Legal Service Plans
Bankruptcy Law Ctr
222 E Grand Ave # 300
Ponca City, OK 74601
(580) 762-8073
Attorneys
Bankruptcy Law Center
400 E Central Ave
Ponca City, OK 74601
(580) 762-8073
General Practice Attorneys, Attorneys
Collins Michael
400 E Central Ave Suite 303
Ponca City, OK 74601
(580) 762-8060
Attorneys,  Bankruptcy Law Attorneys,  Criminal Law Attorneys,  Wills, Trusts & Estate Planning Att
Martin Jean & Jackson
116 N 5th St
Ponca City, OK 74601
(580) 304-7768
Attorneys,  Personal Injury Law Attorneys,  Legal Clinics,  Labor & Employment Law Attorneys,  Socia
Miller William J
120 N 2nd St
Ponca City, OK 74601
(580) 765-6697
General Practice Attorneys, Attorneys
Miller Carolyn A
120 N 2nd St
Ponca City, OK 74601
(580) 765-6697
Attorneys, General Practice Attorneys
Garrison David R
612 N 3rd St
Ponca City, OK 74601
(580) 765-6666
Attorneys
Bailey James M
1922 Lake Rd
Ponca City, OK 74604
(580) 762-6666
Attorneys
Wayne Lee Law
204 E Grand Ave
Ponca City, OK 74601
(580) 762-5553
Attorneys, Adoption Services
Burlie, Todd
1914 Lake Rd
Ponca City, OK 74604
(580) 762-4800
Attorneys,  Bankruptcy Services,  Probate Law Attorneys,  Criminal Law Attorneys,  Abortion Alternat
Burlie & Terrell
1914 Lake Rd
Ponca City, OK 74604
(580) 762-4800
Estate Planning Attorneys,  Attorneys,  Estate Planning, Probate, & Living Trusts,  General Practi
Terrell Fera
1914 Lake Rd
Ponca City, OK 74604
(580) 762-4800
Attorneys
Powell Cleve W
400 E Central Ave # 405
Ponca City, OK 74601
(580) 762-3600
Attorneys
Bracken, Gary L. PC
210 E Grand Ave
Ponca City, OK 74601
(580) 762-3100
Bankruptcy Services,  Attorneys,  Legal Service Plans,  Bankruptcy Law Attorneys
Michael E. Trewitt
1926 Lake Rd Suite 1
Ponca City, OK 74604
(580) 761-2982
Attorneys
Evans Thomas
115 E Grand Ave
Ponca City, OK 74601
(580) 762-2889
Attorneys
Boettcher Thomas D
116 N 5th St
Ponca City, OK 74601
(580) 765-2541
General Practice Attorneys, Attorneys, Legal Service Plans
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US